The company has hedges covering 200 MMcf per day of natural gas for the fourth quarter of 2008 at a weighted-average NYMEX floor price of $8.60 per Mcf. For 2009, hedges cover 190 MMcf of natural gas per day, representing approximately 70% of projected natural gas production, also at a weighted-average NYMEX floor price of $8.60 per Mcf.
The company previously announced that its borrowing base was increased to $1.2 billion on its $1.45 billion credit facility. At September 30, 2008 the company had approximately $434 million of liquidity from the credit facility. The lender group is made up of 25 lenders, the majority of which are A+ rated or higher and no one lender holds more than 7% of the facility. The lender diversity and the relatively low percentage participation by each lender should provide for significant flexibility if further consolidation occurs in the banking industry. Hedging counterparties are a diversified group of 10 institutions, 8 of which are participants in the company’s credit facility.
About Quicksilver Resources
Fort Worth, Texas-based Quicksilver Resources is a natural gas and crude oil exploration and production company engaged in the development and acquisition of long-lived, unconventional natural gas reserves, including coalbed methane, shale gas, and tight sands gas in North America. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas and Cut Bank, Montana. Quicksilver’s Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. For more information about Quicksilver Resources, visit www.qrinc.com.
Forward-Looking Statements
The statements in this press release regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although these statements reflect the current views, assumptions and expectations of Quicksilver Resources’ management, the matters addressed herein are subject to numerous risks and uncertainties, which could cause actual activities, performance, outcomes and results to differ materially from those indicated. Factors that could result in such differences or otherwise materially affect Quicksilver Resources’ financial condition, results of operations and cash flows include: changes in general economic conditions; fluctuations in natural gas, natural gas liquids and crude oil prices; failure or delays in achieving expected production from exploration and development projects; uncertainties inherent in estimates of natural gas, natural gas liquids and crude oil reserves and predicting natural gas, natural gas liquids and crude oil reservoir performance; effects of hedging natural gas, natural gas liquids and crude oil prices; competitive conditions in our industry; actions taken by third parties, including operators, processors and transporters; changes in the availability and cost of capital; delays in obtaining oilfield equipment and increases in drilling and other service costs; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; the effects of existing and future laws and governmental regulations; and the effects of existing or future litigation; as well as, other factors disclosed in Quicksilver Resources’ filings with the Securities and Exchange Commission. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Investor & Media Contact:
Quicksilver Resources Inc.
Rick Buterbaugh
(817) 665-4835
KWK 08-23
